Agenda item

To consider a report by Councillor Hugh Evans, Leader and Lead Member for Economy and Corporate Governance (copy enclosed) updating Cabinet on progress with the development of a competitive Growth Deal Bid for the region and seeking approval of authorisations for the work going forward.

RESOLVED that Cabinet –

(a)       notes and supports the progress of the development of a competitive Growth Deal Bid for the region;

(b)       supports in principle, the preferred governance model of a statutory joint committee model for further development, with a full report on a recommended constitution and terms of reference, and Inter Authority Agreement, to follow later in the year;

(c)        authorises the Leader to act as Denbighshire’s member of a ‘Shadow’ Joint Committee in the interim period;

(d)       authorises the Leader, together with the Leaders of the other 5 partners councils, to enter into collective first stage negotiations with both Governments over the scale and outline content of a Growth Deal Bid, noting that no financial or other commitments will be entered into at this first stage of negotiations, and

(e)       confirms that it has read, understood and taken account of the Well-being Impact Assessment (Appendix 3 to the report) as part of its consideration.

Councillor Hugh Evans presented the report updating Cabinet on progress with the development of a Growth Deal Bid for the region, advised as to the next steps within the process and sought approval of authorisations for the work going forward.

Cabinet was reminded that the Growth Vision for the Economy of North Wales had been adopted by all six Cabinets and other partner organisations and they had been invited to develop that vision into a ‘Growth Bid’ for national investment and the conferment of powers from UK and Welsh Governments.  The Leader was confident that Denbighshire would benefit from the deal and highlighted the need to work regionally with partners to provide a thriving economy for North Wales.

The Corporate Director Economy and Public Realm provided some further background and outlined development work already undertaken under the themes of (a) strategic employment and housing sites; (b) business growth and innovation; (c) transport infrastructure and services; and (d) skills, worklessness and social reform.  She also advised of the expected timescales for future progression and elaborated upon the report recommendations.  Early stage negotiations needed to start with both Welsh and UK Governments and approval was sought to establish a ‘Shadow’ Joint Committee and authorise the Leader to represent Denbighshire on it and in the first stage negotiations pending formal establishment of the full Joint Committee.  A similar report was being presented to all six Cabinets.

During a lengthy debate the main issues focused on the following matters –

·         questions were raised regarding Denbighshire’s relationship and interaction with other economic alliances given the growth deal bid and officers explained the role of the Mersey Dee Alliance who continued to work alongside the region; referred to close working with Cheshire and Warrington Local Economic Partnership on a cross border basis; and contributions made to the wider strategy of the Northern Powerhouse network.  Further reference was made to the regional work running parallel to other growth bids in selected regions of England and in South Wales and recognised links with West Midlands in particular and the need to work with the Midlands Engine for Growth.  It was also noted that the role of the North Wales Economic Ambition Board would need to change as a result of the new governance arrangements 

·         the importance of ensuring Denbighshire was well placed to benefit from the regional working and would not be disadvantaged as a result was emphasised.  Officers were keen to stress the potentially strong benefits for Denbighshire, who was very well placed being central in the region, and there were proposals already in the growth deal bid which would benefit the county.  A lot of investment lobbying was being undertaken with a view to improving connectivity (both physical and digital) which would make it easier for residents to travel, and employment opportunities that may be created both further afield and in the county with St. Asaph Business Park having been identified as a key employment location.  The Leader would be responsible for promoting and safeguarding Denbighshire’s interests through the Joint Committee and this work had also been identified as a core priority for the new Corporate Director

·         officers elaborated on the proposed governance model and constitutional arrangements advising that membership would consist of the Leader of each of the six Councils with the option to co-opt non-voting advisors from three key partner organisations.  A host authority would be required to support the Joint Committee and provide legal, secretarial and administrative support.  Work was currently ongoing to develop an Inter Authority Agreement (IAA) setting out how the Joint Committee would be governed; how decisions would be made (including reserved matters for individual authorities); how financial contributions would be apportioned and indemnities.  The IAA would also set out how a local authority could leave that agreement.  Reference was made to different models for partnership arrangements and assurances were provided that the Joint Committee was the most appropriate model in this case.  The proposed model and its functions were consistent with the model proposed by Welsh Government for regional governance.  Different structures would need to be set up under the Joint Committee in order to oversee individual projects.  It was noted that further debate was required around financial proportionality and contributions for particular schemes to ensure Denbighshire had value for money and the need for a clear financial governance structure was also highlighted.  Individual business cases for elements of particular bids would need to be approved both in financial terms and content

·         scrutiny of the Joint Committee would be a matter for the six local authorities to agree and include in the IAA and there may be an option to consider joint scrutiny arrangements – in the interim Partnerships Scrutiny Committee would be reviewing the arrangements for the growth deal bid as it developed

·         it was clarified that there would be no lead authority and no local authority would have any greater influence over another.  The host authority would provide legal, secretarial and administrative support and would not offer an advantage

·         in terms of leading on particular areas of work going forward the report referred to what was required to develop those proposals into business cases which would be a matter for the Shadow Joint Committee to consider.  It had been suggested that a team of potentially seconded officers could work together to develop the proposals for the region

·         some discussion focused on the physical connectivity of the region including the importance of Holyhead Port; projects including electrification, and other specific transport links within the region.  Road and rail infrastructure and connectivity and wider transport planning were central to the North Wales Growth Strategy and the Growth Track 360 Plan made the case for cross-border rail investment.  In terms of regional working the proposal was for a Joint Committee around economic development but given the importance of transport infrastructure it was expected that a specialist Transport Sub-Committee would be required.  Transport Lead Members had been in discussions regarding a more regional approach to enable greater control and management of transport issues which may be achieved by having a regional transport authority

·         it was clarified that the growth bid was to both UK and Welsh Governments who would agree jointly whether or not they would fund it and the need for careful consideration of the final governance model and the way any future financial contributions or commitments were approved had been highlighted in the report.  There were no direct additional resource implications at this stage beyond making a revenue contribution of £50k from 2017/18 budgets which had already been accounted for.  Future costs would be considered in future budget rounds.

RESOLVED that Cabinet –

(a)       notes and supports the progress of the development of a competitive Growth Deal Bid for the region;

(b)       supports in principle, the preferred governance model of a statutory joint committee model for further development, with a full report on a recommended constitution and terms of reference, and Inter Authority Agreement, to follow later in the year;

(c)        authorises the Leader to act as Denbighshire’s member of a ‘Shadow’ Joint Committee in the interim period;

(d)       authorises the Leader, together with the Leaders of the other 5 partners councils, to enter into collective first stage negotiations with both Governments over the scale and outline content of a Growth Deal Bid, noting that no financial or other commitments will be entered into at this first stage of negotiations, and

(e)       confirms that it has read, understood and taken account of the Well-being Impact Assessment (Appendix 3 to the report) as part of its consideration.